Indiana University Health Expands with New Downtown Hospital and Medical Campus

The cost of the expanded 44-acre campus and neighboring properties is projected at an additional $1.98 billion.

By HFT Staff
January 16, 2023

Indiana University Health began construction on its downtown hospital and expanded medical campus. The project will combine operations of IU Health Methodist and University hospitals upon its opening and expand investments in community health initiatives and neighborhood development. 

The hospital will add 864 private patient beds from a previously planned 672 beds and its three bed towers will be set at 16 stories.  

The construction cost of the new hospital is now budgeted by the board at $2.31 billion. This reflects rising construction costs of over 20 percent since the project was first budgeted. IU Health is working closely with its construction partners to contain costs and achieve efficiencies during the building process. Upon completion the new hospital will save $50 million a year in operating costs by consolidating two large acute-care hospitals, eliminating duplication of many services. 

The cost of support buildings, infrastructure and other expenditures on the expanded 44-acre campus and neighboring properties is projected at an additional $1.98 billion. Support buildings include medical offices, parking garages and logistics space. 

The new hospital and surrounding support buildings will be developed as an environmentally sustainable campus to manage pollution and minimize runoff. IU Health improved site conditions by removing soil contaminated from previous commercial uses. Buildings will be U.S. Green Building Council LEED Silver-certified and U.S. EPA Energy Star rated for energy efficiency and a healthy indoor climate. 

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